Risk Determinants and Investment Decisions: An Explanatory Study

Abstract

This research suggest a general framework to help understating Jordanian investors’ disposition towards risk orientation, where risk attributes is a fundamental issue in creating monetary choices. This research examines various financial risk tolerance and investment orientation of investors in Jordan, where this study investigate whether demographic factors influence the financial risk tolerance and investment orientations. The research utilizes a randomly selected sample of 106 individual investors trading in the financial market of Jordan.  The findings of the statistical analysis has confirmed that a high average risk orientation is related with higher income level and higher education level. The empirical investigation have had revealed that the demographic variables that have a substantial influence on investor’s risk orientations are income level, Age, and education level.

Keywords: Risk attributes, financial decisions, investment choices, path analysis, PLS methods